Canmore Zoning Types and Descriptions:

Canmore's zoning for short-term rentals is organized into four primary categories, each with unique rules and limitations based on housing type, rental duration, and financing options.

1. Residential Zoning: This zoning allows full-time or long-term rentals but does not permit short-term rentals (less than 30 days). It is intended for year-round or primary residents who want to live in Canmore or lease out their properties for extended periods.
   • Properties Allowed: Single-family homes, duplexes, townhouses, and condos.
   • Usage: Year-round residence, long-term rentals (30+ days).
   • Advantages: No restrictions on personal use, applies to all housing styles, lowest property tax rate.
   • Disadvantages: Short-term rentals (less than 30 days) are prohibited. Long-term rentals often require property management (7–12% fees).
2. Tourist Zoning: Offering the most flexibility, this zoning allows both long-term and short-term rentals, as well as full-time residence. Properties in this zone are subject to higher taxes unless declared as primary residences, and traditional mortgages can be harder to secure, often requiring cash purchases or commercial financing.
   • Properties Allowed: Apartment-style condos.
   • Usage: Most flexible; allows full-time, long-term, and short-term rentals (nightly/weekly).
   • Advantages: Zoned for all types of living and rental options, ideal for vacation rentals (Airbnb, VRBO).
   • Disadvantages: Higher tax rate unless designated as primary residence, financing often requires cash or commercial loans.
3. Visitor Accommodation Zoning: This zoning supports short-term rentals, often managed by a rental pool or front-desk service, and allows part-time stays (under 30 days at a time) for owners. Properties in this zone can be left vacant when not rented out but generally require cash-only purchases due to limited mortgage options.
   • Properties Allowed: Vacation condos, hotel-style units.
   • Usage: Part-time stays (up to 30 days at a time); vacant or managed as short-term rentals when not in use.
   • Advantages: Allows short-term rentals, hotel-like management, flexibility in vacancy.
   • Disadvantages: Cash-only purchases are typical due to mortgage restrictions, 30-day maximum stay at one time.
4. Employee/PAH (Perpetually Affordable Housing): These units are for full-time Bow Valley workers, with purchase or rental restricted to those meeting local employment criteria.
   • Properties Allowed: Condos for local employees.
   • Usage: Restricted to those working 20+ hours per week in the Bow Valley.
   • Advantages: Supports housing affordability for local workers.
   • Disadvantages: Limited to employed residents, resale may be restricted.

Each zoning type supports Canmore’s effort to protect affordable housing, maintain community dynamics, and promote tourism responsibly. For more details, including zoning maps, check Canmore's official zoning information, and Canmore's official zoning map.

If you have questions about zoning or tax implications, or to find out what zoning is applicable to what property on the MLS - our knowledgable REALTORS® can answer all of your questions. Contact an agent now.

Key Tax Details by Zoning Type:

In Canmore, the tax rate for short-term rental properties depends on the specific zoning classification, such as Tourist Zoning or Visitor Accommodation Zoning, which are subject to higher tax rates than standard residential properties. These higher rates reflect the commercial nature of short-term rentals, which are generally seen as similar to businesses rather than personal residences.

1. Tourist Zoning:
   • Properties in this zone are typically taxed at a higher rate than residential properties due to their potential use for income through short-term rentals.
   • Owners can apply to be taxed at the lower residential rate if they declare the property as their primary residence. This can lead to significant tax savings, potentially reducing property taxes by thousands of dollars annually.
2. Visitor Accommodation Zoning:
   • Taxed at a similar or higher rate than Tourist Zoned properties, as these are specifically set aside for short-term, hotel-like accommodations.
   • There is no primary residence tax adjustment for this zoning, meaning it remains taxed at a higher commercial-like rate.

Why Higher Tax Rates?

The elevated tax rates on Tourist and Visitor Accommodation properties are set to balance the economic benefits of tourism with community housing and infrastructure needs. Short-term rentals tend to generate more income and higher occupancy rates, which justifies the higher tax bracket, as these funds help the municipality support tourism infrastructure, local services, and affordable housing initiatives.

These tax implications mean that short-term rental owners in Canmore face higher ongoing costs compared to residential properties, though they also have the flexibility to generate income through short-term rental platforms.